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    Utah Real Estate MARKET UPDATE (2015 Recap)

     

    How is the Utah Real Estate Market?

     

    Hi I’m David Pestana, Broker and owner of RISE Realty.  Today I want to give you a market update, specifically, how did we do in 2015.  Alright, when we look at the Utah real estate market for 2015, we also want to compare it to 2014 to see how we did.  I’m going to look at 3 main numbers to help us identify it.  First is “combine days on market” (CDOM), second is the total number of home sales that happen, and third is the price (how did we do).

    Alright first, combine days on market, this is the amount of time it takes for a home to get under contract, as you can see, in 2015 homes dramatically accelerated in the time it takes to get them under contract.  Lets focus in on Utah County; this is the combine days on market broken down into counties.  Utah County in 2015 was 27 days, so it took under 30 days for a house to get under contract. And in 2014 it was 47 days.  This shows a lot of demand, that there are people out there that are hungry to buy houses and there is a lot of competition typically at this point.

    Alright, next we have total number of sales.  This just shows how many people are buying homes.  In 2015 we had 8,393 homes sold.  This is up 15% from the previous year in 2014 where we sold 7,150. Now what does this show? It shows that we are a growing county.  A lot of home builders are building all over the place, as you can see.  There are places like vineyard that are appearing over the last few years as these new cities.  There is a lot of demand, there is a lot of growth in our demographics and builders are continuing to build, homes are churning.

    The third I want to share with you is price. How are prices doing in the real estate economy right now? And so to give you some perspective, I am going to show how prices have been few years going back to 2009.   In 2009 home values were at $249,000 and then they had a decline for several years, where we hit a bottom after 4 years in 2012 at about $200,000, and since then for the last 3 years we have had steady increases in value. Right now the average home in Utah County is at $256,000.  So what’s important about this? Well as homes appreciate, people have equity in their homes; they have had the ability to refinance through those lower rates, they have had the ability to sell.  In those down years, there was no equity for people to sell, so many people were short selling and/or foreclosing on their houses.  Today there are very few (percentage wise) short sales and foreclosures on the market.  Most people are able to sell and gain equity out of their home. So in that sense, the real estate market is very strong here in Utah, specifically I am talking about Utah County.  There is a demand for the home, there are builders trying to respond to that demand, and people are eating it up right now.  I think in anticipation of higher interest rates, people are also eager to lock in at a lower rate, at a low payment, for a long time.

    If you’re looking to buy or sell real estate, we here at RISE Realty are happy to help.  Our logo is to help you to succeed in real estate. There are a few tools we have to help you.  One is free home evaluation tool, it’s found on our website at riseutah.com, you can go there and check it out, and I also have a link on the video.  The second is just the website itself, riseutah.com, where you can go and find the most up to date homes.  We can set you up on listing alerts where you can know exactly what is going on for a particular area, for a particular kind of home.  Those listing alerts can come to you daily and give you knowledge of what is new on the market and what has changed in terms of prices.

    Well I’m David Pestana, broker and owner of RISE Realty.  Thanks for watching this video.  In the future if there is a topic you would like me to cover, just comment or respond to me and I’ll see what I can do to get it in.

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